what would be reasonable monetary policy if the economy was in a recession? a cut taxes b raise taxes c…
what would be reasonable monetary policy if the economy was in a recession? a cut taxes b raise taxes c reduce the money supply d increase the money supply e increase tariffs on imports
Answer
Brief Explanations:
Monetary policy involves actions related to the money - supply. In a recession, increasing the money supply can stimulate economic activity. Raising or cutting taxes are fiscal policies, not monetary. Increasing tariffs is a trade - related policy, not monetary. Reducing the money supply would further contract the economy in a recession.
Answer:
D. increase the money supply